HOUSE Amended 2nd Reading July 6, 2006First Extraordinary Session Sixty-fifth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 06B-2073.02 Kristen Forrestal HOUSE BILL 06S-1017 HOUSE SPONSORSHIP Solano, and Paccione SENATE SPONSORSHIP (None), House Committees Senate Committees Business Affairs and Labor Appropriations A BILL FOR AN ACT Concerning documentation by an employer that demonstrates compliance with federal employment verification requirements, and making an appropriation in connection therewith. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Requires each employer in Colorado to attest that the employer has verified the legal work status of each employee, that the employer has not altered or falsified the employee's identification documents, and that the employer has not knowingly hired an unauthorized alien. Requires each employer in Colorado to submit documentation to the director of the division of labor within the department of labor and employment that demonstrates that the employer is in compliance with federal employment verification requirements. Authorizes the director to conduct random audits of employers to ensure compliance with the federal laws. Requires the director to request documentation if the director receives a valid complaint that an employer is not in compliance with federal law. Subjects an employer to a fine for the failure to provide documentation or for the provision of fraudulent documentation. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Part 1 of article 2 of title 8, Colorado Revised Statutes, is amended BY THE ADDITION A NEW SECTION to read: 8-2-122. Employment verification requirements - quarterly report - audits - fine for fraudulent documents - definitions. (1) As used in this section, unless the context otherwise requires: (a) "Director" means the director of the division. (b) "Division" means the division of labor in the department of labor and employment. (c) "Employer" means a person or entity that: (I) Transacts business in Colorado; (II) At any time, employs another person to perform services of any nature; and (III) Has control of the payment of wages for such services or is the officer, agent, or employee of the person or entity having control of the payment of wages. (d) "Unauthorized alien" has the same meaning as set forth in 8 U.S.C. sec. 1324a (h) (3). (2) Each employer in Colorado shall attest that the employer has verified the legal work status of each employee and has retained file copies of the documents required by 8 U.S.C. sec. 1324a; that the employer has not altered or falsified the employee's identification documents; and that the employer has not knowingly hired an unauthorized alien. The employer shall keep a written copy of the attestation, and of the documents required by 8 U.S.C. sec. 1324a, for the term of employment of each employee. (3) Upon the request of the director, an employer shall submit documentation to the director that demonstrates that the employer is in compliance with the employment verification requirements specified in 8 U.S.C. sec. 1324a (b) and documentation that the employer has complied with the requirements of subsection (2) of this section. The director or the director's designee may conduct random audits of employers in Colorado to obtain the documentation. Upon receipt of any credible complaint that an employer has not complied with the employment verification requirements, the director shall request the employer to submit the documentation. (4) An employer who fails to submit the documentation required by this section, or who submits documentation that the employer knows or reasonably should have known is false or fraudulent, shall be subject to a fine of not more than five thousand dollars for the first offense and not more than twenty-five thousand dollars for the second and any subsequent offense. The moneys collected pursuant to this subsection (4) shall be deposited in the employment verification cash fund, which is hereby created. The moneys in the fund shall be appropriated to the department of labor and employment for the purpose of implementing, administering, and enforcing this section. The moneys in the fund shall remain in the fund and not revert to the general fund or any other fund at the and of any fiscal year. (5) (a) No employer shall initiate or administer any disciplinary action against an employee on account of the employee's disclosure of information. This paragraph (a) shall not apply to an employee who discloses information that the employee knows to be false or who discloses information with disregard for the truth or falsity thereof or an employee who discloses information which is confidential under any other provision of law. (b) As used in this article, unless the context otherwise requires: (I) "Disciplinary action" means any direct or indirect form of discipline or penalty, including, but not limited to, dismissal, demotion, transfer, reassignment, suspension, corrective action, reprimand, admonishment, unsatisfactory or below standard performance evaluation, reduction in force, or withholding of work, or the threat of any such discipline or penalty. (II) "Disclosure of information" means a report to the department of labor and employment pursuant to subsection (3) of this section that an employer has not complied with subsection (1) this section. SECTION 2. Appropriation. (1) In addition to any other appropriation, there is hereby appropriated, out of any moneys in the employment support fund created in section 8-77-109, Colorado Revised Statutes, not otherwise appropriated, to the department of labor and employment, for allocation to the division of labor, for the fiscal year beginning July 1, 2006, the sum of one hundred ten thousand four hundred forty-seven dollars ($110,447) and 2.0 FTE, or so much thereof as may be necessary, for the implementation of this act. (2) In addition to any other appropriation, there is hereby appropriated, out of any moneys in the employment support fund created in section 8-77-109, Colorado Revised Statutes, not otherwise appropriated, to the department of labor and employment, for allocation to the executive director's office, for legal services, for the fiscal year beginning July 1, 2006, the sum of three thousand two hundred twenty- three dollars ($3,223), or so much thereof as may be necessary, for the implementation of this act. (3) In addition to any other appropriation, there is hereby appropriated to the department of law, for the fiscal year beginning July 1, 2006, the sum of three thousand two hundred twenty-three dollars ($3,223), or so much thereof as may be necessary, for the provision of legal services to the division of labor in the department of labor and employment related to the implementation of this act. Said sum shall be from cash funds exempt received from the division of labor in the department of labor and employment out of the appropriation made in subsection (2) of this section. SECTION 3. Effective date - applicability. This act shall take effect upon passage and shall apply to employees hired on or after January 1, 2007. SECTION 4. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.